Banco De Desarrollo De América Latina, or CAF, said it approved a credit line of up to $400 million for Banco Central De Venezuela, a move that drew strong criticism from Venezuela's marginalized opposition.
CAF said the loan is part of the development bank's strategy to provide "macroeconomic support to its member countries, with the purpose of contributing to regional economic stability."
The loan will help Venezuela guarantee "the stability of imports in the country," the bank added, at a time when the nation is struggling with a severe economic crisis and food shortages.
The country's opposition, however, accused the bank of "financing a dictatorship," Reuters reported.
"This is incomprehensible," opposition legislator Angel Alvarado was quoted as saying. "The country isn't in a position to take on more debt and the president of the central bank has not been ratified by the [opposition-led] congress."